Kingston and Surbiton MP Edward Davey has accused the Government of snatching much-needed cash from the borough.

Next years revenue support grant (RSG) money given to Kingston by the Government to pay for services will be £79.5million, nearly seven per cent higher than the previous year, it was announced last week.

But Mr Davey said the Government handout was insufficient and could result in cutbacks to services or yet another hike in council tax.

The Conservative administration announced at a full council meeting on Tuesday that council tax could rise by as much as 18.5 per cent, to maintain service provision at current levels.

Mr Davey is writing to Stephen Byers, the secretary of state for local government, to demand changes in the provisional settlement to stop the unfairness to Kingston.

He said: Ministers are snatching cash back from Kingston, just when their own figures say we do need extra.

The high costs of running basic services in an area like Kingston are now showing through in the statistics, but Government is capping the compensation Kingston should receive. Ministers should give Kingston our cash back.

Speaking at a full council meeting on Tuesday, council leader Councillor Kevin Davis said decisions would have to be made if the claw-back mechanism, which councils use to compensate for a shortfall in revenue, is suspended.

The councils cabinet will publish their budget proposals on January 22.